NT okays $800m Northern Gas Pipeline, Jemena poised to solve Australia's gas crisis

Pipelines run at the McKay River Suncor oil sands in-situ operations near Fort McMurray, Alberta, September 17, 2014. In 1967 Suncor helped pioneer the commercial development of Canada's oil sands, one of the largest petroleum resource basins in the — The Bank of Canada has announced that it would keep the benchmark interest rate steady at 0.75 percent. Reuters/Todd Korol

The Northern Territory government officially approves the $800m Northern Gas Pipeline project as a construction license is granted. Jemena, the company behind the 622km pipeline between Tennant Creek and Mt Isa in Queensland, says the project will help solve Australia's gas supply crisis.

The Northern Gas Pipeline project is designed to bring gas to the east coast market. Jemena project director Jonathan Spink says the company is well progressed on a feasibility assessment to extend the pipeline to Wallumbilla gas hub.

Spink’s statement comes as Resources Minister Ken Vowles announces Jemena is granted a Pipeline Licence. Consent for the construction of the Phillip Creek Station Compressor Facility is also granted.

Vowles says major milestones have been acquired in the development of the pipeline. He recognises that the project would create jobs for the territory, with around 900 jobs during construction and would support the government’s intentions to develop Tennant Creek as a resources industry services hub, which is expected to create more jobs.

The minister assured that a comprehensive assessment of the pipeline management plan has been conducted. The Environmental Management Plan is also included in the review. Vowles says the government wants to ensure that the pipeline is constructed in such a way that it delivers safe and secure infrastructure that meets the requirements of the Northern Territory, NT News reports.

Katherine Times noted that NT Environmental Protection Authority performed an assessment of the Northern Gas Pipeline’s Environmental Impact Statement (EIS). It suggested that the project must be given approval to build and operate the pipeline within the Northern Territory.

Good news for the east coast

Spink says the green light for the Northern Gas Pipeline project is a good news for east-coast gas customers who will soon benefit from another NT gas flowing into Queensland. He is confident that Jemena will quickly scale-up the NGP to deliver up to or beyond 700TJ of gas daily to the east coast, depending on demand. "The NGP continues to be the cheapest and most direct route to deliver gas to where it is needed most and is the sensible choice in responding to the east-coast gas crunch," he said per the Australian Associated Press.

Phillips Earthmoving, according to Spink, has been in talks with Jemena to perform initial land clearing activities as part of the Phillip Creek Compressor Station build. Forty five trainees will soon shift into roles on the project.